BNY Mellon Opens $4 Trillion Repo Niche to Holders of China Debt
- Bonds bought through Hong Kong platform eligible as collateral
- First U.S. bank to do that in tri-party repurchase agreements
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Bank of New York Mellon Corp, one of the world’s biggest custodian banks, may give another boost to the booming Chinese bond market.
BNY Mellon, which holds $41 trillion on behalf of its customers, said late Monday that it has started allowing investors to pledge Chinese debt purchased through Hong Kong’s Bond Connect as collateral for so-called tri-party repurchase agreements, a nearly $4 trillion corner of the global short-term financing market.